The Economic Cost of Gender Gaps in Effective Labor: Africa's Missing Growth Reserve

Amarakoon Bandara

Feminist Economics, 2015, vol. 21, issue 2, 162-186

Abstract: This study analyzes the impact of the gender gap in effective labor - defined as the combined effect of the gender gaps in labor force participation and education - on economic output per worker. The results indicate that the gender gap in effective labor has a negative effect on the economic output per worker in African countries. A 1 percent increase in the gender gap in effective labor leads to a reduction in output per worker by 0.43-0.49 percent in Africa overall, 0.29-0.50 percent in Sub-Saharan Africa, and 0.26-0.32 percent in a wider group of countries from Africa and Asia. The total annual economic losses due to gender gaps in effective labor could be as high as US$255 billion for the African region. Results confirm that Africa is missing its full growth potential because a sizeable portion of its growth reserve - women - is not fully utilized.

Date: 2015
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DOI: 10.1080/13545701.2014.986153

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